In a recent legal development, former Binance CEO Changpeng Zhao could be subjected to deposition in the ongoing class action suit of Sizemore v. Zhao, aiming for damages surpassing $1 billion. The court filing submitted on December 8 highlighted the potential for Zhao’s sworn testimony outside the courtroom as the plaintiffs seek redress.

The latest motion from the plaintiffs indicates their request for permission to depose Zhao, who stands as one of the defendants in this significant legal battle. A deposition could pave the way for Zhao to provide sworn testimony, bypassing the necessity of appearing before a judge in court.

Adam Moskowitz, the attorney representing the plaintiffs, expressed uncertainties surrounding Zhao’s potential sentencing, stating, “We have no idea how long CZ will be sentenced to prison, [it] could be 60 years or no years.” Moskowitz elaborated on the potential outcomes, highlighting scenarios where Zhao might flee to the UAE if given no jail time or face challenges arranging a deposition from prison if sentenced.

Furthermore, Moskowitz emphasized the potential relevance of Zhao’s guilty plea to federal charges in bolstering the class action suit, clarifying that he was not involved in any discussions between Zhao and the U.S. government.

The class action suit, initiated in March 2023, alleges Zhao’s involvement, along with other parties, in facilitating unregistered securities offerings through Binance. Specifically, the lawsuit focuses on Binance’s BNB token and BUSD stablecoin.

Originally citing statements from the U.S. Securities and Exchange Commission (SEC) about BUSD in February and actions by the Commodities and Futures Trade Commission (CFTC) in March, the complaint was later amended to include a reference to an ongoing SEC case against Binance initiated in June 2023. Notably, the complaint hasn’t been updated to reflect Binance’s settlement in November with certain U.S. agencies.

Apart from naming Zhao and directly related entities as defendants, the lawsuit implicates other parties. It singles out Paxos for its role in issuing the BUSD stablecoin and includes NBA player Jimmy Butler and former BitboyCrypto host Ben Armstrong as defendants, alleging they received payment for endorsing Binance.

This legal saga continues to unfold, shaping the landscape of crypto-related legal proceedings and potential implications for the individuals and entities involved. As developments emerge, the intricacies of the case highlight the complexity of navigating the legalities within the cryptocurrency space.

The latest courtroom revelation indicates a move to depose Zhao, allowing him to provide sworn testimony outside the court’s confines. Adam Moskowitz, representing the plaintiffs, shed light on the uncertainty surrounding Zhao’s potential legal fate and its impact on the case. Moskowitz emphasized that Zhao’s guilty plea to federal charges could significantly bolster the class action suit, affirming no involvement in Zhao’s discussions with U.S. authorities.

This legal entanglement commenced in March 2023, alleging Zhao’s involvement in facilitating unregistered securities offerings through Binance, particularly concerning the BNB token and BUSD stablecoin. Initially citing regulatory actions by the SEC and the CFTC in February and March, respectively, the lawsuit evolved, referencing an ongoing SEC case initiated in June 2023. Notably, it does not reflect Binance’s November settlement with select U.S. agencies.

Beyond Zhao and Binance, the suit extends its allegations to various entities. Paxos, linked to issuing the BUSD stablecoin, finds itself listed as a defendant. Moreover, NBA player Jimmy Butler and former BitboyCrypto host Ben Armstrong are accused of endorsing Binance for financial compensation.

The intricacies of this legal clash delve into the complexities of cryptocurrency regulations and the involvement of high-profile individuals, expanding far beyond a typical courtroom showdown. Understanding the implications requires a deeper look into the legal intricacies and potential reverberations across the cryptocurrency landscape.